EXHIBIT 11
CHATTEM, INC. AND SUBSIDIARIES
STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS
(Unaudited and in thousands, except per share amounts)
FOR THE THREE MONTHS FOR THE SIX MONTHS
ENDED ENDED
MAY 31, MAY 31,
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1997 1996 1997 1996
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NET INCOME:
Continuing operations................................................... $ 3,057 $ 2,010 $ 3,193 $ 1,973
Extraordinary loss...................................................... -- (532) -- (532)
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Net income............................................................ $ 3,057 $ 1,478 $ 3,193 $ 1,441
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WEIGHTED AVERAGE NUMBER OF COMMON AND COMMON EQUIVALENT SHARES
OUTSTANDING:
Weighted average number of common shares outstanding.................... 8,613 7,743 8,608 7,519
Shares issued upon assumed exercise of outstanding stock options and
stock warrants........................................................ 239 51 222 28
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Weighted average number of common and common equivalent shares
outstanding........................................................... 8,852 7,794 8,830 7,547
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NET INCOME PER COMMON SHARE:
Continuing operations................................................... $ 0.35 $ 0.26 $ 0.36 $ 0.26
Extraordinary loss...................................................... -- (0.07) -- (0.07)
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Net income per common share........................................... $ 0.35 $ 0.19 $ 0.36 $ 0.19
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